XRP & the Interledger Protocol Connecting All Payment Networks
The Interledger Protocol (ILP) enables payments across any ledger or network. Originally built at Ripple, now a W3C standard.
The Interledger Protocol (ILP) is an open protocol for connecting different payment networks — like HTTP connects different computers. Created at Ripple in 2015, it's now a W3C standard. XRP serves as an ideal bridge currency within ILP, enabling payments across any ledger, bank, or payment system.
| Key Facts | |
|---|---|
| Created By | Ripple Labs (2015) |
| Standard | W3C Community Group |
| Purpose | Connect all payment networks |
| XRP Role | Ideal bridge currency |
| Protocol | Open, ledger-agnostic |
| Status | Active development |
What Is the Interledger Protocol?
ILP is to payments what HTTP is to information — an open protocol that connects different networks. Just as HTTP lets any computer talk to any other computer regardless of operating system, ILP lets any payment network transact with any other regardless of the underlying technology.
Works with any ledger: XRPL, Bitcoin, Ethereum, banks, mobile money, anything.
Breaks payments into small packets routed across connectors. Like internet data packets.
Payments route around failures. If one path is down, another is found.
Anyone can implement ILP. No permission needed. W3C community group maintains specs.
How ILP Works
1. Sender initiates
Alice wants to send $10 from her bank to Bob's mobile money wallet in Kenya.
2. Route discovery
ILP connectors find the cheapest path between Alice's bank and Bob's wallet.
3. Packet routing
The $10 is split into small packets routed through connectors across different networks.
4. Bridge currencies
XRP or other assets bridge between networks at each hop. Instant settlement.
5. Bob receives
Bob gets the equivalent in his local currency. The whole process takes seconds.
XRP's Role in ILP
While ILP is ledger-agnostic, XRP is the ideal bridge currency for ILP payments: 3-5 second settlement, near-zero fees, and deep liquidity. ODL uses this exact approach.
ILP connectors need a bridge asset that settles fast, costs little, and has liquidity. XRP is purpose-built for this. The XRPL's 3-5 second finality means connectors have minimal capital risk during transfers.
Web Monetization
ILP powered Coil's web monetization platform, enabling streaming micropayments to content creators. While Coil shut down, the Web Monetization standard (W3C) continues development.
Web Monetization is an official W3C standard for streaming payments to websites.
Content creators receive direct micropayments instead of relying on advertising.
Uses ILP for routing payments across different ledgers and payment systems.
Could enable a new internet economy where content is paid for directly.
Future of ILP
CBDC interoperability
ILP could connect different countries' CBDCs, enabling seamless cross-border CBDC payments.
DeFi connectivity
Bridge different DeFi ecosystems across blockchains via ILP.
Financial inclusion
Connect unbanked populations to the global financial system via mobile money + ILP.
Frequently Asked Questions
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ILP is part of XRP's vision for connecting all payment networks.
Last updated: February 15, 2026. Written by the AllAboutXRP Editorial Team.
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